Strategic Management Take Home Midterm Exam Dr. Mohamed Taher Part One: Essay Questions-Please answer the following questions:

A-The profitability of an industry is determined by the systematic influences of the industrys structure. Porters five forces framework identifies five structural variables: Intensity of competition, threat of new entrants, threat of substitutes as well as bargaining power of suppliers and buyers. -Explain how economies of scale and experience might constitute barriers for companies entering an industry. Give an example. -Using an example of a professional service firm, explain the dynamics of bargaining power of suppliers and buyers in this industry. Explain and justify your example.B- An important theory in strategic management is the resource-based view of the firm developed by Wernerfelt (1984), Rumelt (1984), Barney (1991) and others. Explain the difference in explanation of profitability of Porters five forces and the resource-based view. How does this affect the firm?

Give an example.C-Why do you think that the global marketplace is increasingly getting to be a very important strategic level playing field?How- in your opinion- you can advice a leading Egyptian Fast food chain to strategically enter and grow in international markets.Part Two: Case Study Analysis:

PEPSICO CASE STUDY www.pepsico.com1-Vision Statement (ASSESS)2-Mission Statement (ASSESS)3-External Audit A-Opportunities B-ThreatsC- External Factor Evaluation (EFE) MatrixD- CPM Competitive Profile Matrix (PEPSICO, COCA-COLA, KRAFT)4-Internal AuditA-Strengths B-WeaknessesC-Internal Factor Evaluation (IFE) Matrix5- The current strategies adopted by the firm.